"Korean Semiconductors Are the Heart and Soul of the AI Revolution" Cathie Wood Highlights Samsung and SK hynix

Assesses Korea's Semiconductor Competitiveness on PLUS TV
Reiterates Optimism About Tesla

Cathie Wood, CEO of ARK Invest and widely known among Korean investors as the "Money Tree Sister," has identified Samsung Electronics and SK hynix as core suppliers in the global artificial intelligence (AI) industry. Regarding Tesla, she reaffirmed her long-term bullish outlook on the stock, citing the company's expansion into the robotaxi business.

Wood, who recently visited Korea, appeared on Hanwha Financial Group’s YouTube channel ‘PLUS TV’ on June 17 and gave a high assessment of the competitiveness of Korea’s semiconductor industry. She compared Samsung Electronics and SK hynix to the “heart and soul” of the AI revolution, predicting that Korea could become a major beneficiary as global AI investments accelerate.

Wood, CEO, who recently visited Korea, appeared on Hanwha Financial Group's YouTube channel 'PLUS TV' on the 17th and highly evaluated the competitiveness of Korea's semiconductor industry. PLUS TV

In particular, she highlighted the partnership between Samsung Electronics and Tesla as a prime example of the competitiveness of Korea’s semiconductor sector. Samsung Electronics has been involved in the production of Tesla’s current AI4 chips and is expected to play a key role in supplying next-generation AI6 chips. According to Reuters, Tesla CEO Elon Musk announced that Samsung Electronics would manufacture Tesla’s AI6 chips, and Samsung stated that it plans to begin production of Tesla chips based on a 2-nanometer process in the second half of 2027.

She also evaluated SK hynix as being well-positioned to benefit from rising demand for high-bandwidth memory (HBM) and DRAM, driven by the proliferation of AI servers. According to market research firm TrendForce, Samsung Electronics maintained a 38.5% share of the global DRAM market in the first quarter of this year, ranking first, while SK hynix held second place with a 28.8% share. During the same period, major memory manufacturers have allocated production mainly to high value-added server products, and the upward trend in traditional DRAM contract prices is expected to continue in the second quarter.

She also reiterated her optimism about Tesla. CEO Wood mentioned ARK’s 2029 price target for Tesla of $2,600, stating that given the current share price, there remains significant mid- to long-term upside potential. In its valuation model released in 2024, ARK projected Tesla’s expected share price in 2029 at $2,600, with bearish and bullish scenarios set at $2,000 and $3,100, respectively.

Cathy Wood, CEO of ARK Investment Management, widely known as the 'Money Tree Sister.' Photo by NH Investment & Securities via Yonhap News Agency

The key variable in ARK’s outlook for Tesla is the robotaxi business. ARK anticipates that a substantial portion of Tesla’s corporate value and profits in 2029 will come from its robotaxi operations. CEO Wood also explained that Tesla is highly likely to be re-evaluated in the future not just as an automaker, but as an AI, robotics, and energy company.

However, she advised that for the Korean stock market to achieve a higher long-term valuation, it needs to move beyond its semiconductor-centric structure. She emphasized the need to broaden the investment base to include a range of innovative industries such as robotics, nuclear power, and gene editing.

Finally, CEO Wood highlighted diversification as an investment principle. She noted that if a particular stock has become too dominant in a portfolio, it is advisable to realize some profits and expand the range of investments. CEO Wood also assessed that the AI revolution is still in its early stages, and that long-term productivity gains could help ease inflationary pressures over time.

This content was produced with the assistance of AI translation services.